This paper will evaluate a scenario in which Mary, an independent contractor and the Little Lamb Company enter a working relationship and how it evolves. The scenario in the assignment makes it ambiguous whether the role of Mary is that of an independent contractor or an employee.
“Little Lamb Company needs an additional programmer for a special project. The company enters into a contract with Mary to complete this project. Just as the project is nearing completion, a new need arises for her services. She is asked to continue with the company to complete the new project. While completing the new project, the supervisor begins working more closely with Mary and requires her to use company materials and equipment while adhering to company work schedules. After two years, economic conditions force the company to make budget cuts. Mary is asked to leave. Thirty days later, a major contract is acquired by the company, which reinstates the need for Mary’s services as a programmer. However, the supervisor chooses to hire his equally-qualified cousin and not offer Mary the opportunity to return.”
After evaluating the entire scenario, the employment status of Mary would be that of a company employee. Using the IRS Twenty Factor Test as well as the chart in text on page 16, for the benchmark of the setting of Mary and the Little Lamb Company, the results were obvious. Mary transitioned to an employee when the Little Lamb Company asked her to work on a new project to help the company complete it. During that time Mary began taking directives and objectives from a supervisor for the new project. As time goes on with the new project, Mary’s duties require her to be trained on and use Little Lamb’s facility, equipment and materials. Although it was not specified whether Mary was full-time she did adopt the hours and work schedule. In the end Mary was treated like an at-will-employee because when an economic downturn force budget cuts Mary was laid-off.
To be considered an...